North American Pet Insurance Revenue Up 15%: Packaged Facts Report

November 20, 2013

North American pet insurance gross written premiums will reach $618 million in 2013, up 15% from $539 million in 2012, according to Packaged Facts’ recently released report, “Pet Insurance in North America, 5th Edition.”

Rockville, MD (PRWEB) November 20, 2013

North American pet insurance gross written premiums will reach $618 million in 2013, up 15% from $539 million in 2012, according to Packaged Facts’ recently released report, “Pet Insurance in North America, 5th Edition.”

The United States accounted for $536 million of the segment’s total in 2013, with Canada comprising the remainder. Both markets posted growth over the previous year, with sales increasing 16% in the U.S. and 9% in Canada. Veterinary Pet Insurance (VPI), based on its commanding presence in the U.S., claims the largest share of the North American market, at 41% of gross written premiums (GWPs).

The North American pet health insurance market should continue charting healthy annual increases over the next five years. North American gross written premiums will reach $962 million in 2018, with the industry crossing the billion dollar threshold by the end of the decade, according to Packaged Facts research director David Sprinkle.

Despite this robust level of market dynamism, the industry continues to feel the impact of the recession, as well as consumer resistance to this still relatively novel form of health insurance. Pet insurance penetration in the United States remains at less than 2% of pet owners, compared with rates as high as 25% in the U.K. and 50% in Sweden. Even so, the level of competitive activity is at an all-time high, and partnerships and a strengthening of the various sales channels will help the North American pet insurance industry to continue to expand.